Bessent Blames Lutnick as Nvidia Chips Reach China Despite Export Controls
Treasury Secretary Scott Bessent has publicly blamed Commerce Secretary Howard Lutnick for the failure to blacklist Megaspeed, the Singapore-based company at the centre of allegations that advanced Nvidia artificial intelligence chips reached China. Bessent made the charge on CNBC’s Squawk Box on Friday 13 November 2026, in the most open display yet of division inside President Donald Trump’s administration over export controls.
Bessent said the Treasury Department, the Pentagon, the State Department and the Office of the US Trade Representative had all supported placing Megaspeed on Washington’s trade blacklist “for months”. He said no decision had been taken because the Commerce Department, which controls the list, had not acted.
“But Commerce has the pen,” Bessent told CNBC. “You will have to ask them about their internal processes.” The Commerce Department’s Entity List restricts companies considered a national security risk from accessing American technology.
The row is the latest chapter in the site’s earlier Nvidia coverage.
| Key fact | Detail |
|---|---|
| Who spoke out | Treasury Secretary Scott Bessent, on CNBC’s Squawk Box, Friday 13 November 2026 |
| Who was blamed | Commerce Secretary Howard Lutnick and the Commerce Department |
| Company at the centre | Megaspeed International, a Singapore-based Nvidia customer |
| Allegation | Megaspeed is suspected of buying advanced Nvidia AI chips and routing them to China |
| Agencies backing a blacklist | Treasury, Pentagon, State Department and US Trade Representative |
| White House position | Trump “maintains complete confidence” in Lutnick, per a Thursday statement |
| Trump’s directive | China should not receive Nvidia chips above the H100 level, Bessent said. |
Four Agencies Backed the Blacklist — Commerce Held the Pen
Bessent’s account puts the delay squarely on the Commerce Department. He said four agencies had favoured adding Megaspeed to the Entity List for months, yet the listing never happened. Commerce holds the final say over who joins the list, and Bessent said the department would have to explain its own internal processes.
Axios had earlier reported that Bessent confronted Lutnick during an Oval Office meeting over the failure to place Megaspeed on the Entity List. A Commerce Department spokesperson denied that the conversation took place. Bessent, speaking on Friday, did not deny that a confrontation had happened.
Bessent also said he was frustrated because Trump had made the limits clear. “I am frustrated when President Trump made it very clear that China should not receive any Nvidia chips above H100s,” he said. He added that any leakage “hurts our great companies in the AI race” and gives China an advantage.
How Megaspeed Became the Centre of the Chip Row
Megaspeed emerged as a major Nvidia customer for advanced AI chips. It is suspected of buying processors for data centres in Southeast Asia and then routing them to China, in breach of strict US controls on advanced computing technology. Reports said the firm traded more than $4 billion worth of Nvidia chips over two years.
The Commerce Department’s Bureau of Industry and Security opened an investigation in 2024 into Nvidia’s sales to Megaspeed, to determine whether the processors were being redirected to China. The case was later transferred to the Justice Department. The White House has imposed strict controls on advanced AI chips sold to China, aiming to prevent Beijing from obtaining computing power that could strengthen its artificial intelligence capabilities.
Bessent said there was “a lot of leakage in the system” and that the administration was constantly working to close it down. He also pointed to questions over how well Nvidia had vetted its partner company.
The Huang Resignation and the $7.5 Billion Question
The row follows the resignation of Nvidia chief executive Jensen Huang, after reports emerged that he had shipped chips to China following an alleged romantic relationship with Alice Huang, the former chief executive of Megaspeed, whom US authorities suspect of being a Chinese intelligence asset. Huang admitted to an extramarital affair in a letter to employees on 8 November, but did not identify the woman.
The Information reported that Alice Huang allegedly used her ties to help move at least $7.5 billion worth of Nvidia chips to Chinese technology firms since 2023. The personal allegations have now been overtaken by the policy fight, with Bessent saying they risked distracting from the national security and export-control issues at stake.
The controversy has shaken Silicon Valley and placed Lutnick under pressure within the administration. According to CNN, some of Trump’s advisers, reeling from the fallout of Huang’s resignation, have begun discussing whether Lutnick should be dismissed. The White House, however, issued a statement on Thursday saying Trump “maintains complete confidence in the secretary and his ability to carry out the position as the most transformative Commerce Secretary in modern history.”
What Happens Next for Lutnick and Export Controls
Lutnick remains in office with Trump’s backing, but the questions over Megaspeed are unlikely to fade. Growing criticism of his role in overseeing export controls on chips to China has now been aired in public by a fellow cabinet secretary, and Congress is expected to press for answers on why the listing stalled.
The episode also raises wider questions about enforcement. If a company suspected of diverting billions of dollars of advanced chips can stay off the Entity List for months despite support from four agencies, the system for policing export controls will face fresh scrutiny. For now, the administration says it is working to shut down the leakage — while its own cabinet members argue in public over who let it happen.
For readers following the wider US–China technology contest, the dispute matters beyond one company. Export controls are Washington’s main tool for slowing China’s advance in artificial intelligence, and their credibility depends on swift, joined-up enforcement across departments.
Frequently Asked Questions
Q: Who is Scott Bessent? A: Scott Bessent is the US Treasury Secretary in President Donald Trump’s administration. He publicly blamed the Commerce Department on 13 November 2026 over the Megaspeed export-control row.
Q: Who is Howard Lutnick? A: Howard Lutnick is the US Commerce Secretary. His department controls the Entity List, the trade blacklist at the centre of the dispute, and he remains in office with Trump’s backing.
Q: What is Megaspeed? A: Megaspeed International is a Singapore-based company and a major Nvidia customer. It is suspected of buying advanced Nvidia AI chips and routing them to China, in breach of US export controls.
Q: What is the Entity List? A: The Entity List is a US Commerce Department trade blacklist. Companies on it are restricted from accessing American technology because they are considered a national security or foreign policy risk.
Q: Did Trump back Lutnick? A: Yes. The White House said on Thursday 12 November 2026 that Trump “maintains complete confidence” in Lutnick, even as some advisers discussed whether he should be dismissed.
Q: Myth-busting: Was Megaspeed already blacklisted? A: No. Despite support from four agencies for months, Megaspeed had not been placed on the Entity List when Bessent spoke on Friday. That delay is the core of his complaint.
